xii. Provisions and Contingent Liabilities (Other than for employee benefit):
Provisions are recognized when the company has a present legal and constructive obligations
arising from past events, outflow of future economic benefits should be probable and it should
be measured in a reliable manner.
Provisions for onerous contracts i.e., contract where the expected unavoidable cost of meeting
the obligation under the contract exceed the economic benefits expected to be received under it,
are recognized when it is probable that an outflow of resources embodying economic benefits will
be required to settle a present obligation as result of an obligating event based on a reliable
estimate of such obligations
Provisions are measured at the present value of management best estimates. Expenditure will
be required to settle the present obligation at the end of the reporting period.
Disclosures of contingent liability is present obligation as a result of past obligation events-
on the basis of the evidence available, there is present obligation and an outflow of resources
embodying economic benefits where settlement is probable.
xiii. Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents
includes cash on hand, deposits held at call with financial institutions, other short- term, highly
liquid investments with original maturities of three months or less that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in value,
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the
balance sheet.
Statement of cash flow is prepared in accordance with the indirect method prescribed in Ind
AS-7 ‘Statement of cash flows.
xiv. Earnings Per Share:
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the
post-tax effect of extraordinary items, if any) by the weighted average number of equity shares
outstanding during the period. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for
dividend, interest and other charges to expense or income relating to the dilutive potential
equity shares, by the weighted average number of equity shares considered for deriving basic
earnings per share and the weighted average number of equity shares which could have been
issued on the conversion of all dilutive potential equity shares. Potential equity shares are
deemed to be dilutive only if their conversion to equity shares would decrease the net profit
per share from continuing ordinary operations. Potential dilutive equity shares are deemed to
be converted as at the beginning of the period, unless they have been issued at a later date.
The dilutive potential equity shares are adjusted for the proceeds receivable had the shares
been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive
potential equity shares are determined independently for each period presented.
4. Earnings and Expenditure in foreign currency
There have been no imports or exports during the year.
5. Trade Receivables
The company has Trade Receivables of Rs 2,61,170.79 Lakhs outstanding for more than 3 years.
The Company has not made any provision for expected credit losses on trade receivables during
the year. Management believes that all receivables are recoverable as at the reporting date. The
company continues to monitor the creditworthiness of its customers and will reassess the need
for provisioning in future periods.
6. Employee Benefits:
The Company offers gratuity benefits, a defined employee benefit scheme to its employees.
The said benefit plan is exposed to actuarial risks such as longevity risk and salary risk. The
Company has not funded its gratuity obligations. The following table sets out the status of the
defined benefit schemes and the amount recognised in the standalone financial statements as
per the actuarial valuation done by an independent actuary.
8. Goods and Services Tax ( GST )
Expenses and assets are recognised net of the amount of sales/ value added taxes/ goods and
services tax paid, except:
• When the tax incurred on a purchase of assets or services is not recoverable from the taxation
authority, in which case, the tax paid is recognised as part of the cost of acquisition of the
asset or as part of the expense item, as applicable; and
• When receivables and payables are stated with the amount of tax included. The net amount
of tax recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the balance sheet
The company has regularly filed the requisite returns under GST laws. There were certain
differences between books and the returns filed which needs to be reconciled. However, in the
opinion of the management, the differences were not material and will not have any major effect
on the profit and loss account.
9. Leases
Operating lease:
The Company has let-out and taken premises under cancellable operating lease agreements, which
the Company intends to renew in the normal course of its business. The lessee cannot sublease
these properties. Total lease rentals recognized as income in the Profit and Loss Account for
the current year is Rs. 144.00 Lakhs (Previous year Rs. 132.31 lakhs) and total lease rentals
recognized as expenditure for the current year is Rs. 9.43 lakhs (Previous year Rs. 14.47 lakhs).
i. Capital and other commitments
Estimated number of contracts remaining to be executed on capital account and not provided
for is Nil (Previous Year is Nil).
ii. Micro and Small Enterprises dues
Based on the information / Documents available with the Company, amounts due to micro
and small enterprises are NIL.
10. Brief Particulars of Employees who were entitled to receive or were in receipt of emoluments
aggregating to Rs.60,00,000/- or more per annum and/or Rs.500,000/- or more per month, if
employed, for a part of the year is Nil (Previous Year Nil)
11. The company has an ongoing litigation with Canara Bank with regard to the correct balance.
The matter is pending before the Honorable Debt Recovery Tribunal, however the company
has disclosed the entire alleged difference in balance along with interest in the Balance Sheet
for accounting purpose, which is not an admission of the alleged balance by the company.
12. SEBI has initiated an investigation and had appointed independent forensic auditors to examine
the affairs. The investigation is currently in progress, and the company is extending full
cooperation and is confident that the matter will be resolved as the Company has conducted
all it’s affairs correctly as per the applicable provisions.
13. The Company has a pending litigation with MCX with regard to misappropriation of it’s account
by MCX and the matter is pending before Bombay High Court.
14. The Company has parked the pending amount of Rs. 27.07 lakhs in separate accounts which
is to be transferred to Investor’s Education and Protection Fund (IEPF) by filing IEPF-1 form
through the portal of MCA. However, the portal of MCA being under reconstruction has not
accepted the IEPF-1 form and it has been informed to the company by the ROC office that
the portal would be up shortly and IEPF-1 form would be accepted.
15. The Financial Statements of the Company for the year ended 31st March 2026 were approved
and adopted by the Board of Directors at their meeting held on 30th May 2026. Mr Vikas
Kumar Khetan Company secretary and Key managerial person resigned on 30th April 2026
due to personal reasons because of which the financials have not been signed by the Company
secretary. The Board of Directors is taking necessary steps to fill this casual vacancy within
the statutory timelines prescribed under Section 203(4) of the Companies Act, 2013.
16. Segment reporting policies:
The Company is mainly engaged in the business of gold and gold products. The Company
has identified the Board of Directors of the Company as the Chief Operating Decision Maker
(CODM) as defined under Ind AS 108 “Operating Segments”. The CODM evaluated and according
to their analysis company’s business activity falls within a single operating segment. Hence
there is no separate reportable segment under Indian Accounting Standard on Ind AS 108,
‘Operating Segment’.
17. The Company assesses its assets annually for any indication for impairment of asset. For
the year company has identified that there is no material impairment of assets and hence no
provision is required as per Indian Accounting Standards.
18. Company has not done any transactions with parties registered under MSME so there is no
outstanding amount due to MSME.
19. Financial risk management
The Company’s financial assets majorly comprise of trade receivables, current investments, bank
deposits and cash & cash equivalents. The Company’s financial liabilities majorly comprise of
borrowings, trade payables and other commitments.
The Company is primarily exposed to market risk, credit risk and liquidity risk arising out of
operations and the use of financial instruments. The Board of Directors have overall responsibility
for establishment and review of the Company’s risk management framework.
The Company’s risk management policies are established to identify and analyse the risks
faced by the Company, to set appropriate risk limits and controls, and to monitor risks and
adherence to limits. Risk management policies and systems are reviewed regularly to reflect
changes in market conditions affecting business operations and the Company’s activities.
a. Market risk
Market risk is that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises three types of risk: interest rate
risk, currency risk and other price risk, such as commodity risk. The exposure to currency
risk and interest risk is given below:
(a) Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial
instrument will fluctuate due to changes in market interest rates. The Company’s
exposure to the risk of changes in interest rates relates to short term / working capital
in nature and hence are not exposed to significant interest rate risk.
(b) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure
will fluctuate because of changes in foreign exchange rates. The Company’s exposure
to the risk of changes in foreign exchange rates relates primarily to the Company’s
operating activities (when revenue or expenses is denominated in a foreign currency)
and the Company’s net investment in foreign subsidiaries.
b. Credit risk
Credit risk is the risk that the counterparty will not meet its obligation under a financial
instrument or customer contract leading to financial loss. The Company’s exposure to credit
risk arises from its operating and financing activities. The credit risk arises primarily from
trade receivables, and the maximum exposure to credit risk is equal to the carrying value
of financial assets.
In order to mitigate the credit risk on receivables, credit quality of the customer is assessed
based on the credit rating scorecard and individual credit limits are defined in accordance
with this assessment. Outstanding receivables are monitored on an ongoing basis to ensure
timely collections and to mitigate the risk of bad debts.
An impairment analysis is performed at each reporting date for the outstanding trade
receivables and expected credit loss if any are provided for. The Company’s maximum
exposure to counterparty credit risk at the reporting date is the carrying value of financial
assets.
c. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting financial
obligations due to shortage of funds. The Company’s exposure to liquidity risk arises primarily
from mismatches of the maturities in financial assets and liabilities. The Company’s objective
is to maintain a balance between continuity of funding and flexibility. The Company’s
treasury management team monitors on a daily basis the fund positions/requirements and
identifies future mismatches in funds availability and reports the planned and current
liquidity position to the top management and board of directors of the Company.
The table below summarises the maturity profile of the Company’s financial assets and
liabilities at the end of the reporting period based on contractual undiscounted cash flows:
For the purpose of calculating diluted earnings per share, the profit attributable to equity
holders of the parent and the weighted average number of ordinary shares outstanding during
the financial year have been adjusted for the dilutive effects of all potential ordinary shares,
warrants and share options granted to employees. The dilutive earning per share is calculated
by dividing the profit attributable to equity holders of the parent company by the weighted
average number of shares that would have been in issue upon full exercise of the remaining
warrants, adjusted by the number of such shares that would have been issued at fair value as
follows:
22. Management Discussion and analysis
Management discussion and analysis report forms a part of the annual report and includes
various matters.
23. Reconciliation of Share Capital Audit
A qualified Practicing Company Secretary carried out a share capital audit quarterly reconciled
and confirmed that the total admitted equity share capital with the National Securities Depository
Limited (“NSDL”), the Central Depository Services (India) Limited (“CDSL”) and shares in
physical forms are in agreement with the total issued and listed equity share capital.
24. Additional Regulatory Information:
As per the notification issued on 24th March 2021, the Ministry of Corporate Affairs, has
amended Schedule III of The Companies Act, 2013, requiring additional disclosure which are
applicable to the company has been disclosed below.
i) There are no proceedings initiated or pending against the company for holding any Benami
Property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and Rules
made there under during the year.
iii) There is no balance outstanding on account of any transaction with Companies stuck off
under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.
iv) There is no tax assessment under The Income Tax Act, 1961 for non-disclosure or surrender
of undisclosed income during the year.
v) The Company does not have any Capital work in progress or intangible assets under
development whose completion is overdue or has exceeded its cost compared to its original
plan.
vi) The Company, other than as disclosed in Note No. 3 has not advanced or loaned or invested
funds to any other person(s) or entity(ies), including foreign entity (intermediaries) with
the understanding that intermediary shall: (a) Directly or indirectly lend or invest in other
person or entities identified in any manner whatsoever by or on behalf of the company
(Ultimate Beneficiaries) or (b) Provide any guarantee, security or the like to or on behalf
of the Ultimate Beneficiaries.
vii) The Company has not received any fund from any person(s) or entity(ies), including foreign
entity (Funding Party) with the understanding (whether recorded in writing or otherwise)
that the company shall: (a) Directly or indirectly lend or invest in other person or entities
identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate
Beneficiaries) or (b) Provide any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.
viii) The company has not traded nor invested in the Virtual Currency - Crypto Currency during
the year.
ix) The management acknowledges the regulatory requirement of a software with a feature to
track changes in financial records. The ERP currently used by the company does not contain
an edit option itself to avoid any misuse in the accounting and hence the requirement for
a feature to track changes does not exist. Currently the company is developing a new ERP
with futuristic technology which will contain an audit trail feature.
25. The previous year’s figure has been reworked, regrouped, rearranged and reclassified wherever
necessary. Amounts and other disclosures for the preceding year are included as an integral
part of the current year financial statements and are to be read in relation to the amounts
and other disclosures relating to the current year.
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